RBC Capital Markets Corp. v. Bittner

24 Misc. 3d 728, 877 N.Y.S.2d 877
CourtNew York Supreme Court
DecidedApril 20, 2009
StatusPublished
Cited by1 cases

This text of 24 Misc. 3d 728 (RBC Capital Markets Corp. v. Bittner) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RBC Capital Markets Corp. v. Bittner, 24 Misc. 3d 728, 877 N.Y.S.2d 877 (N.Y. Super. Ct. 2009).

Opinion

OPINION OF THE COURT

Michael D. Stallman, J.

Petitioner RBC Capital Markets Corporation seeks to confirm an arbitration award rendered in its favor against respondent Brian M. Bittner, a former employee, resulting from an arbitration before NASD Dispute Resolution, Inc. The three-person arbitration panel rendered an award granting petitioner enforcement of the terms of a settlement agreement involving a dispute over a loan that petitioner made to respondent. Two arbitrators signed the award on May 15, 2007; the third arbitrator signed the award on May 16, 2007. Petitioner commenced this proceeding to confirm the award on May 13, 2008.

Respondent moved to dismiss the petition for lack of personal jurisdiction, due to a lack of service, and lack of subject matter jurisdiction, i.e., petitioner allegedly did not seek to confirm the award within one year of when the award was rendered (motion sequence No. 003). Petitioner cross-moved for an extension of the time to serve the pleadings and for an order approving an alternative means of service upon respondent’s attorney. By [730]*730interim order dated September 29, 2008, the issue of whether respondent was properly served with the notice of petition and petition to confirm the arbitration award was referred to a Special Referee to hear and report with recommendations. The motion and cross motion were held in abeyance pending the report of the Special Referee.

Respondent moves for an order confirming the report of the Special Referee; petitioner cross-moves for an order rejecting the report. This decision addresses the motion and cross motion (sequence No. 005), and also addresses the motion and cross motion previously held in abeyance (sequence No. 003).

Background

The notice of petition and petition to confirm were allegedly served upon respondent by affix and mail service at 7471 Street Highway 80, Cooperstown, New York 13326, the address allegedly listed on respondent’s driver’s license. In addition, respondent was allegedly served by affix and mail service at 27 Bonn Place, Weehawken, New Jersey 07086. Respondent disputed service, claiming that he did not reside where service was made. By interim decision and order dated September 29, 2008, the issue of whether respondent was properly served with the notice of petition and petition to confirm an arbitration award was referred to a Special Referee to hear and report with recommendations.

Included in this issue referred to the Special Referee was the issue of whether respondent should be estopped from claiming defective service for a possible failure to notify the Department of Motor Vehicles of his change of residence, as required by Vehicle and Traffic Law § 505 (5). (Candela v Johnson, 48 AD3d 502, 503 [2d Dept 2008]; Stillman v City of New York, 39 AD3d 301, 303 [1st Dept 2007].) Vehicle and Traffic Law § 505 (5) requires the holder of a driver’s license to report a change of address to the New York State Department of Motor Vehicles within 10 days of the change of address. The matter was assigned to Special Referee Louis Crespo, who held a hearing on December 9, 2008, and issued his report and recommendation dated January 2, 2009.

At the hearing, an investigator testified on behalf of respondent. The investigator testified that a motor vehicle license search revealed an address for respondent: 7471 Street Highway 80, Cooperstown, New York 13326. (Report at 2 [Findings of Fact ¶ 4].) Respondent stipulated that he did not notify the New [731]*731York State Department of Motor Vehicles when he moved from the Cooperstown, New York address, as required under Vehicle and Traffic Law § 505 (5). (Id. at 4 [Findings of Fact ¶ 12].) Petitioner submitted an affidavit of service at the Cooperstown, New York address, which the Referee found indicated affix and mail service after prior attempts of personal delivery at the address. {Ibid. [Findings of Fact ¶ 11].)

The Special Referee concluded that “the estoppel rule (or defense) under Vehicle and Traffic Law § 505 (5) is not germane to this proceeding.” (Report at 7 [Conclusions of Law ¶ 9].) Reviewing the case law, the Special Referee found that, in cases that involve claims arising from motor vehicle incidents, a licensee was estopped from raising jurisdictional defenses where he or she failed to comply with the notice requirements of Vehicle and Traffic Law § 505 (5), when the licensee is sued for damages. (Report at 7 [Conclusions of Law ¶ 8].) The Special Referee concluded that he

“found no case law to suggest that Vehicle and Traffic Law § 505 (5) is applicable to all actions (tort, contract, landlord tenant, mortgages, subrogation, etc.) against a party who once held a New York license and who has since moved from the last known address noted on his, her or its New York license.” (Ibid. [Conclusions of Law ¶9].)

As to service at the Weehawken, New Jersey address, the Special Referee found that petitioner did not demonstrate due diligence in ascertaining whether respondent resided at the Weehawken address in June 2008, when affix and mail service was made. {Id. at 9 [Conclusions of Law ¶ 16].) Accordingly, the Special Referee concluded that petitioner failed to carry its burden of demonstrating that service upon respondent was properly made.

I

“It is well settled that the report of a Special Referee shall be confirmed whenever the findings contained therein are supported by the record and the Special Referee has clearly defined the issues and resolved matters of credibility, since the Special Referee is considered to be in the best position to determine the issues presented.” (Nager v Panadis, 238 AD2d 135, 135-136 [1st Dept 1997] [citations omitted].)

[732]*732However, the court is not bound by the Referee’s recommendation or his or her determination. (Garrick-Aug Assoc. Store Leasing v Shefa Land Corp., 270 AD2d 68, 69 [1st Dept 2000].) CPLR 4403 provides that the court has the power to confirm or reject “in whole or in part. . . the report of a referee to report; may make new findings with or without taking additional testimony; and may order a new trial or hearing.” (See also Matter of Galiber v Previte, 40 NY2d 822, 824 [1976]; Barrett v Stone, 236 AD2d 323, 324 [1st Dept 1997].)

The court does not disturb the Special Referee’s finding that respondent was not properly served at the Weehawken, New Jersey address. The record supports the Referee’s conclusion that the Weehawken, New Jersey address was not respondent’s dwelling place. The Special Referee accepted that respondent resided in West New York, New Jersey, based on a lease which started in April 2008, two months prior to service at the Weehawken, New Jersey address. Although the pleadings may be mailed to the last known address of respondent, the pleadings must be affixed to the respondent’s actual place of business, dwelling place, or usual place of abode. (CPLR 308 [4]; In Ja Kim v Dong Hee Han, 37 AD3d 662 [2d Dept 2007] [personal jurisdiction was not acquired over the defendant because the plaintiffs attempted to serve the defendant at an address that was never the defendant’s dwelling place or usual place of abode].) Therefore, affix and mail service at the Weehawken, New Jersey address was defective.

On the issue of whether service was properly made upon respondent at the address in Cooperstown, New York:

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Cite This Page — Counsel Stack

Bluebook (online)
24 Misc. 3d 728, 877 N.Y.S.2d 877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rbc-capital-markets-corp-v-bittner-nysupct-2009.